Compare TOP CFD Brokers in the UK
Use our comparison tables to compare the best CFD brokers authorised and regulated by the FCA. Choose or switch to a broker that offers the most markets, best pricing and biggest welcome offer.
CFD trading carries a high level of risk and can result in losses that exceed your deposits.
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ETX Capital are one of the oldest CFD brokers in the UK. ETX was founded in 1965 as Monecor and remains a member of the London Stock exchange. They offer tight spreads as low as 0.7 on EuroDollar and 0.9 on other FX pairs. ETX has won some pretty decent awards including: Money AM Awards 2012 Best Online Charts. Investment Trends Award 2013 Best Value for Money and UK Forex Award 2013 Best Forex Trading Tool & Software.For new clients they offer a no deposit £20 to test their Pro, MT4 and Binary trading platforms. For depositing clients it is possible to claim up to £3,750 as a welcome bonus (more info).
IG Spread Betting
IG are the largest CFD broker in the world, by both market capitalization (they are listed on the LSE with a mkt cap of over £2.5bn) and active client base. As such IG invest have one of the largest range of markets available through their trading platform and some of the best free trader tools available to clients you can test their platform by opening a demo account here.
ayondo are one of the more innovative CFD brokers as they focus on offering social trading. So you can basically copy other spread betting traders and make money when they make money. They offer new clients £500 to switch accounts to drum up new business and offer traditional spread betting as well. You can even set your margin limits to 100% if you want to trade on a non-leveraged basis and just take advantage of the tax breaks. If you go toayondo because of the social trading feature you can earn money by getting other traders to follow you or by choosing a winning trader to follow. Obviously picking a winning trader to follow is just as hard as picking a winning stock! Sign up with ayondo here.
Core Spreads are one of the newest CFD brokers in the UK. Core Spreads objective to to provide the tightest spreads in the industry but offering an execution only platform (i.e. now news, analysis, or trader tools). For spread bettors looking to reduce trading costs Core Spreads offer a simple, quick and easy to use trading platform find out more. For new clients they also offer a 50% rebate on your first month’s trading costs (which is a bit like an uncapped welcome bonus (sort of)).
The eToro social trading network was originally called retail FX when it was founded in 2006. It now have millions of traders ranked in leagues across the world. The eToro website claims to have over 4,500,000 registered traders. For new traders it is possible to claim up to $1,000 as a welcome bonus as as with all social trading networks you can earn money by being a leader or by following a profitable trader. Find out more…
How do CFDs (Contract for Differences) Work?
Trading CFDs is a form of high risk, high reward speculation on the financial markets. By using one of the best CFD brokers in the UK clients can trade shares, FX, commodities, fixed income and indices like the FTSE, Dax, Down and S&P. CFDs are a leveraged OTC (over the counter) product so you don;t actually own the underlying asset – just receive a P&L based on the difference between the price at which you open and close a trade. You can read more about how CFD trading works here.
Top three reasons to trade CFDs
CFDs are one of the most cost effective ways to speculate on the financial markets. They provide many advantages over traditional investing – but of course with these advantages come disadvantages. You can make big money, but you can also lose big if you don’t know what you are doing and don’t use a well respected CFD broker. Read more about the benefits of CFD trading here.
CFD trading Strategies that can help you make money
If you want to be a profitable CFD trader you need to follow some golden rules of CFD trading. It’s not difficult to make profitable trades, but what is difficult is ensuring that you make more profits on your winning trades than you make losses on your losing trades. It’s a well know fact that even the best traders in the world only get it right half the time. It’s how they manage their CFD positions that sets them apart and makes them better traders.
CFDs versus Spread Betting
Spread betting and CFDs are fairly similar in some respects but totally different in others. Find out the major differences between CFD brokers and spread betting brokers and see which is right for you. What ever product you trade though always read CFD broker reviews to ensure that any broker you choose is regulated by the FCA and have their head office based in London.
Trading stocks and shares on CFDs
The key advantage of trading stocks on CFDs is that you don’t have to pay stamp duty to the government. Also, unlike spread betting you can still get DMA. DMA enables you to get into the order book for trading at the best possible prices. The best equity CFD brokers will offer access to the global markets, but this is generally only for the larger brokers – smaller CFD brokers tend to only offer FX, commodity, index and fixed income prices.
DMA (Direct Market Access) CFD brokers
DMA CFD brokers are really only suitable for clients trading with over £100k on account or for hedge funds. Being able to get inside the bid/offer spread is great, but in reality it doesn’t make a difference, unless you are working really big orders on limits or a high frequency trader. You can read up on the best DMA CFD brokers here. If you need to trade CFDs on DMA make sure you understand that missing a price because you are trying to nick an extra 0.25p could be a costly error. If you’re a professional trader you should only be dealing with a DMA CFD broker.
Advisory CFD brokers
CFDs are a very high risk product and it’s important that clients understand the risks involved before opening an account. Over the years the FCA has clapped down on advisory CFD brokers providing advice and hard core sales tactics used by CFD brokers to get clients to trade more. This website is all about execution only CFD brokers – that means CFD brokers that do not provide advice or recommend trades.
Best CFD brokers for trading Forex
FX CFDs are one of the most popular asset classes in the world. The foriegn exchange market trades well over $4 trillion in volume everyday and a large percentage of that is from client speculating on short term price movements by trading Forex on CFDs. Take a look at our comparison tables to see the best CFD brokers for trading Forex. There are always a few key points that make one broker stand out above the others, tight spreads and bonus offers being a major factor in brokers winning business from one another.
Index trading on CFDs – where to get the best access
The FTSE, Down, Dax and S&P are the major indices that are traded via CFDs at the moment. They offer great liquidity, news flow and are open 24 hours a day. As the underlying stock markets open and close the indices become more volatile so there is plenty of excitement and opportunity to be had from first thing in the morning until well in to the night. Spreads are tight and the intra-day range can be well charted. The top CFD brokers for index trading offer low initial margins on indices providing good leverage for trading on margin.
Reduce your trading costs with a CFD broker rebate program
The more CFDs you trade the lower your trading costs should be. Some brokers charge a commission and others add the commission into the prices they quote. IF your broker is charging commission they may offer a reduction in rates if you deal a certain amount. But for CFD brokers that price in commission to the spread they offer high volume traders a monthly rebate once they trade above a certain amount. See the top CFD rebate programs here.
Top ten CFD brokers in the UK
If you’re looking for your first CFD broker, or want to diversify your risk, by spreading your trading around a few brokers take a look at our top ten CFD brokers section. It provides all the key information on the top ten cfd brokers in the UK, spreads, bonuses, when they were founded – we also show the pros and cons of using each broker. To be in the top ten all brokers must be UK based and regulated by the FCA.
CFD broker reviews – what CFD broker is best?
Choosing a CFD broker is a matter of personal preference. It can be based on anything from colour scheme to how friendly or efficient the customer support or dealing desk. If you want to read reviews of the major CFD brokers in the industry view or CFD broker reviews section.
CFD research and technical analysis
Most decent CFD brokers provide some kind of research and analysis on the markets for their customers. But generally the better the broker the better the research, tools and analysis. It costs a lot of money to hire analysts and provide data to clients and some of it (if you know how to use it) can be exceptionally useful. See the best CFD broker research offerings here.
- Technical analysis provides a good overview of the markets based on charts and historical data
- Fundamental analysis users company financial releases to evaluate the health of a share price
- Economic data and calendars show when important announcements are due that could result in a price move.
CFD broker welcome bonuses and deposit offers
As with most other brokers in the industry, CFD brokers offer welcome bonuses to encourage clients to deposit funds and trade with them. If you are an active trader it’s well worth opening a few accounts to take advantage of the welcome bonuses. Basically they work on the basis that when you deposit funds into your account your broker will top up your account balance based on a percentage of the full amount. To withdraw the funds you have to trade and generate commission of more than two or three times the bonus amount. Take a look at the best CFD brokers bonuses to see if any are worth your while as a CFD trader.
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